Category Archives: Spending

Ghosts of SOTU speeches past

An outfit called Bankrupting America sent out this video last night before the State of the Union address. I didn’t get around to seeing it until today. As the release promises, “The video highlights 3 decades of State of the Union presidential promises on fiscal discipline.”

There’s also a fact sheet that goes with it.

I find being part of a long, ongoing tradition to be very reassuring, don’t you? See, it doesn’t matter whether they’re Democrats or Republicans — presidents are all pretty much alike. People don’t change. Makes us feel… solid,  grounded.

I would say, though, that one of those presidents actually did something about it: Bill Clinton. The video doesn’t mention that. But the fact sheet dismisses it this way: “Despite two years of on-budget surpluses, deficit spending in other years added to the debt.”

Oh, the video also assumes that the only way to reduce the deficit, and the debt, is by reducing spending. Raising taxes, and simply growing the economy to increase revenues, are not considered. In case you didn’t notice that.

Arts advocates gearing up to fight again

Based on the emails I get, one of the best-organized lobbies in South Carolina is the one that promotes the arts. Of course, they need to be if their favored programs are to survive, since it appears that each year that Nikki Haley is governor is going to be a battle for existence for the state Arts Commission and related recipients of state funding.

Following up on the governor’s State of the State address last night (which I missed — anyone have anything to share about that?), they’ve sent out the following release. There will be many more, of last year is any guide:

STATE ARTS FUNDING:

Governor Nikki Haley has now given her State of the State Address and presented her Executive Budget. She has once again recommended NO state appropriations for the South Carolina Arts Commission. However, the agency will continue to move through the budget process which is now in the S.C. House.

Sub-committees of the House Ways & Means (HWM) Committee – the budget writing committee – are holding budget hearings from the various agencies and will later make recommendations for state agency funding in their own version of the state budget. The Arts Commission is scheduled for a budget hearing on Thursday afternoon, January 26th. Their HWM sub-committee consists of:

Rep. Chip Limehouse (Charleston, Berkeley) 803-7342977 [email protected]

Rep. Joe Neal (Richland, Sumter) 803-734-2804 [email protected]

Rep. B.R. Skelton (Pickens) 803-734-3036 [email protected]

Rep. Garry Smith (Greenville) 803-734-3141 [email protected]

Arts supporters should continue to thank their legislators for their past support and request that they continue to support state funding for the Arts Commission – especially if your Representative serves on the above Subcommittee. Don’t forget that many legislators have their own web site, Facebook pages and Twitter accounts. The state’s web site has been redesigned making it easier to locate and contact your legislator, follow the House and Senate meeting calendars and legislation at: www.scstatehouse.gov

ARTS EDUCATION FUNDING:

There is some GOOD news regarding arts education funding within the Governor’s Executive Budget. Governor Haley has reinstated approximately $1.2 million for the Arts Curricula Innovation Grants Program within the Department of Education’s budget, which Superintendent Mick Zais recommended for elimination.

Arts advocates should thank the Governor for her support of these critical funds that are not only used for initiatives that support innovative arts education programs that improve student achievement, but provide quality professional development for arts and classroom teachers.

Governor Nikki Haley

Office of the Governor 1205 Pendleton Street

Columbia, SC 29201

Ph: 803-734-2100

Fx: 803-734-5167

www.Facebook.com/NikkiHaley

www.Twitter.com/scgovoffice

www.governor.sc.gov

Email at:  www.governor.sc.gov/Pages/sendMessage.aspx

SCAA’s ARTS ADVOCACY DAY is Tuesday, February 7th!

Join us at the Statehouse in support of continued state funding for the arts and arts education. Attend the Legislative Appreciation Luncheon in honor of the Legislative Arts Caucus. Join your legislators over lunch and be informed about the latest issues affecting the arts in our schools and in our communities. Reservations are a must and please consider being an “underwriter” of the event! Registration information can be found below. A form is also attached for your convenience.

About those parking garages…

A colleague (not anyone with The State) asked me this morning what I thought about that parking garages story in The State Sunday morning:

Exclusive | USC garages $4 million in the red

Two parking facilities underutilized

By WAYNE WASHINGTON – [email protected]

The University of South Carolina has spent $4 million over the last three years to cover deficits at a pair of underutilized parking structures built to serve the school’s Innovista research campus.

And it could be another half-dozen years before the garages break even, bringing in as much money as they cost the university each year in debt payments.

Combined, the Horizon garage on Main Street and the Discovery garage on Park Street bring in roughly $764,000 a year less in parking revenue than they were expected to generate, according to figures provided by the university.

USC contractually is pledged to use its “best efforts” to cover $1.4 million a year in debt payments on the two garages…

I had to confess I hadn’t read past the top of it, because it didn’t tell me anything new. I mean, we’ve been over this ground before, many times, right? I mean, the reason so many of y’all spit on the ground every time “Innovista” gets mentioned is because USC made the mistake of building those buildings right as the economy was about to crash — causing them to be under-occupied, and therefore for the parking garages attached to be underutilized.

I guess the news in this — the “Exclusive” news — is that there are some actual numbers attached to what we already knew. I guess.

I mean, this is the same ground I covered, yet again, in an exchange with Doug this morning. In an effort to rain on the Nephron parade, Doug wrote:

I really hope this doesn’t turn into another Innovista marketing hype venture like so many of the announcements made by USC over the past few years…

Of course, Doug was trying to head off exactly what I DO say about the Nephron deal, which is that it is one small step in the direction of success for Innovista. I responded to him thusly:

Let me say it again:
Innovista is not about those buildings.
Innovista is not about those buildings.
Innovista is not about those buildings.
Innovista is not about those buildings.
It just isn’t.

I curse the day those buildings were conceived, because they distracted everyone from what the Innovista concept is. It’s about all sorts of investments that will take place in all sorts of physical locations, mostly centered in an area bounded by the new baseball field and the State Museum along the river, and then up to Assembly Street — but NOT limited by that. It’s about leveraging that proximity to the University to promote high-tech development throughout the Midlands. Some will locate in the Innovista proper; some won’t.

As Innovista succeeds, many large and small investors will invest in all sorts of ways in infrastructure — from existing buildings to new. And the types of investors will include living space, restaurants and retail stores for the people who work in the research-related businesses there.

That’s IF it succeeds. Which is hard to do when so many people spit on the ground every time its name gets mentioned.

This IS a case of Innovista succeeding, by the way — one step in the right direction. A business first got involved with USC through Innovista, and is now expanding its business in our area, producing jobs that pay well. This is one of a number of ways that one would expect Innovista to contribute to our economy.

Back to the garages story. For me, the pertinent part, the real perspective on this, comes at the bottom, when Wayne quotes Don Herriott, the guy hired to clean up the Innovista effort after the last guy got pushed out the door:

… Don Herriott, director of Innovista, said the two 110,000-square-foot buildings already constructed are 40 percent occupied by researchers.

One of those buildings should be 60 percent occupied by early next year, Herriott said. The other should be 100 percent occupied in two to three years.

The economic downturn, which struck as the university was moving forward with Innovista, has made it difficult to get the other two buildings planned constructed, Herriott said.

Those buildings still could be erected at some time in the future, Herriott said. But rather than stick with its original, expansive vision of Innovista, USC officials are moving forward with a stripped-down plan that focuses more on selling the benefits of having a high-tech corridor and moving researchers into existing space.

“ ‘If you build it, they will come’ is not a business strategy,” Herriott said when he was hired last year.

Last week, Herriott said Innovista is coming together.

“It’s prime real estate,” he said. “There are people who want to have close proximity to the university.”

That’s the real perspective. That’s what’s happening here. And for my part, I look forward to Innovista — the real Innovista, not those stupid buildings — continuing to take off, to the point at which the $4 million shortfalls will look like a very small price to have paid.

USA Today plays up SC lawmaker pensions

Cindi Scoppe just got a little help.

For years, Cindi has been writing at least annually about the outrageous pensions that SC lawmakers give themselves. She just got some reinforcement in that crusade, with a front-page story in USA Today, which begins:

At age 55, South Carolina state Sen. David Thomas began collecting a pension for his legislative service without leaving office.

Most workers must retire from their jobs before getting retirement benefits. But Thomas used a one-sentence law that he and his colleagues passed in 2002 to let legislators receive a taxpayer-funded pension instead of a salary after serving for 30 years.

Thomas’ $32,390 annual retirement benefit — paid for the rest of his life — is more than triple the $10,400 salary he gave up. His pension exceeds the salary because of another perk: Lawmakers voted to count their expenses in the salary used to calculate their pensions.

No other South Carolina state workers get those perks.

Since January 2005, Thomas, a Republican, has made $148,435 more than a legislative salary would have paid, his financial-disclosure records show. At least four other South Carolina lawmakers are getting pensions instead of salaries, netting an extra $292,000 since 2005, records show.

And so forth and so on.

Increasingly, national media are discovering just how wild and wacky South Carolina is. On the one hand, it’s embarrassing. On the other, it’s nice to get the attention.

Who knows? Maybe the added exposure will help here at home. After all, last year, laudatory national coverage got Nikki Haley elected governor.

Expect Cindi to write about it more.

On Jim Clyburn, earmarks, race, and representing a poor district

I’ve never liked one thing that traditionally has been core to the makeup of members of Congress: bringing home the bacon.

Yes, I know it’s a particularly honored tradition in South Carolina, from Mendel Rivers through Strom Thurmond and on and on. This state was devastated in The Recent Unpleasantness, and it was sort of natural in subsequent generations for folks to want their elected representatives to bring home Yankee bacon whenever possible.

Doesn’t mean that’s the right way to run a government. The federal government should look at the entire country and decide where it needs to build military bases or roads or bridges or place programs of any sort, according to which locations best suit the needs of the whole nation. Or where the greatest need for a particular service might be at a given time — such as disaster services. Largess should not flow according to which lawmakers has the most pull.

Congress has been so bad about this that when we decided we needed to close some military bases the nation no longer needed, we had to set up BRAC to prevent interference by individual members of Congress. It’s been a successful process, but the need for it testifies to a painful failure of our basic system of government.

Congressional pull is not the way to set priorities for our government. This is particularly obvious to a lot of people when we look at spending, but I’ve always been concerned that it’s just a bad policy all-around for making effective decisions for the country. And it disenfranchises Americans whose representatives have less pull.

So it is that I’ve been pleased (in general) with Jim DeMint’s efforts to stop earmarks (which are actually only a small part of the problem), and have never been much of a fan of Jim Clyburn’s more traditional bring-home-the-bacon approach.

But I’m not without sympathy for Clyburn. To explain why, I’ll share a story that at first may seem unrelated. I did not witness this, but I’ve heard about it.

A large part of why Jimmy Carter was elected in 1976, as you will recall, was that he proposed to clean up government. No more Watergates. He promised, although we didn’t yet use this word for it back then, transparency. It was a huge deal; he was never going to lie to us. So after the election, there was a meeting in Columbia of people who had worked in his campaign in South Carolina. Probably a pretty big meeting, since back in those days, we actually had some Democrats in this state. And the Carter guy who was conducting the meeting told them that they shouldn’t expect any inside track on getting positions in the new administration. Everything was going to be open and aboveboard and a level playing field, and there was to be no smoke-filled room patronage.

One of the campaign supporters in the room, a local black leader who was then quite young (I’d want to talk to him and refresh my memory of the story’s details before using his name), protested, “But we just got into the room, and we just started smoking.”

Which was true enough. And more than once have I heard such protests from black politicians — now that we have some political influence, you want to weed such influence out of government.

Well, yes, I do. And I’m sorry some folks just got into the room, but we’ve had enough of that kind of politics.

Nevertheless, I am sympathetic to Jim Clyburn’s desire to get some federal investment into parts of the state that were bypassed when white politicians were grabbing federal resources for South Carolina. This isn’t about unsavory practices; this is about funds that will be distributed somewhere, so why not in your neglected district? Perfectly understandable. Even admirable. So while I am against, for instance, the bridge he wants to build between Lone Star and Rimini, I understand his desire to get some infrastructure into that area that might help economic development flow in behind it.

Against this background, I was interested in Warren Bolton’s column in The State today. I had actually missed it in a cursory skim through the paper this morning (I was conversing with several people while perusing), so I’m glad that my attention was called back to it by a release from, quite naturally, Jim Clyburn’s office. It was headlined, “Earmarks saving grace for Clyburn’s district.” An excerpt:

Frankly, I think the free-wheeling system that has allowed members of Congress to target pet projects for funding is too loosely monitored and arbitrary and, therefore, can be wasteful. But I don’t think that earmarks in general are bad; they can be used to make sure worthwhile projects are funded. In addition to a lack of transparency, the big problem is that the system doesn’t ensure that those important things get done.

But Mr. Clyburn didn’t invent this system. It was in place eons before he even arrived in Congress. Given that those in his district have grave needs that aren’t being met by the state, which has yet to come up with an effective way to address rural challenges that can’t be met by cash-poor local governments, he’s doing what he can.

It’s amazing to me how so many in this state can criticize Mr. Clyburn’s actions when they should be familiar with the challenge of rural South Carolina. While we get many letters to the editor from writers taking issue with Mr. Clyburn on legitimately debatable grounds, such as his positions on issues, his philosophy and even his use of earmarks, many others make statements and accusations that are just plain unfair, false and — quite frankly — racist….

I, like Warren, have fielded some of those calls — and emails, and letters, and blog comments. And while I may often agree with the person commenting that a particular spending proposal is a bad idea, it is disturbing to hear the undertone, the emotion that underlies the complaining. And Warren is right to use what he calls “the ‘R’ word” to describe this thing we hear. It’s the same undertone that I so often hear in the constant attacks on the very idea of public schools, or of government in general — because so many whites in our state, and in other parts of the country as well, have gotten it into their heads that government exists to take money away from honest, hard-working, moral, thrifty, sensible white people and give it, outright, to lazy, shiftless, no-good black people.

Not to put too fine a point on it.

Anyway, I’ve probably given you enough to discuss, but I’d like to point out another passage in Warren’s column:

I get lots of letters and calls from people who try to suggest that Mr. Clyburn can be a big spender and favor increasing taxes on the rich because he is insulated by voters in his “gerrymandered” majority-black district; some all but suggest that the congressman configured the 6th District himself.

But the truth is that Republicans in the S.C. State House gerrymandered the district in an effort to pack as many of the state’s black people together as possible so they could get as many Republicans as possible elected to Congress. That meant creating a majority-black district that has lots of rural areas that are heavily poor, undereducated and undeveloped. They’re areas that lack infrastructure such as water, sewer and roads — or libraries, theaters and bowling allies.

Amen to that Warren, and I’m glad to see you writing that, since I’m not at the paper to do it anymore.

I would amend his characterization of what happened slightly, though. I recall particularly what happened in the early ’90s in the Legislature: Republicans worked with black Democrats to draft a plan, over the resistance of the white Democrats who ran the SC House, that created several more majority-black districts.

Black lawmakers were frustrated with Speaker Bob Sheheen and other Democratic leaders because they were not willing to draw as many “majority-minority” districts as possible. The motivation of the Republicans was less direct. They had figured out that for every district you make majority black, you remove black voters from several other districts, thereby making those seats safe for Republicans, and unsafe for Democrats of any color. So, a tiny gain for those who wanted a few more black lawmakers, but a HUGE, strategic victory for Republicans who wanted to take over South Carolina.

Once that reapportionment plan was in place, the way to power was paved for the GOP. It put them in striking distance. They had big gains in the 1994 election. That, plus some key defections by white Democrats after the election (indeed, the earlier defection of David Beasley to the GOP had given them the head of their ticket), and we saw the Republicans take over the House in January 1995.

But I’ve reminisced enough. Time for y’all to have your say.

Trey Gowdy’s performance at Rotary Monday

On the whole, it was good. He was well-received. Probably more so than Nikki Haley was a few weeks back, and she did pretty well also.

He certainly struck me — and to a much greater extent seemed to strike others — as a far, far more reasonable guy than the one who ran to the far right of Bob Inglis and eviscerated him in last year’s primary. It’s hard to explain to you why that was such a big deal unless you already understand. I had enough trouble finding time to write this post without taking time to go over the last 19 years.

But briefly: Bob Inglis shocked political observers across the state when he came out of nowhere to beat the Democratic incumbent in 1992. Scribes had to make excuses to their editors for why they hadn’t seen it coming. A favorite that I heard was “He cheated. He didn’t run a conventional campaign. He ran underground, through the churches.” Inglis was the prototype of two separate waves of revolution on the right that didn’t fully break until two years later. He was a new-wave religious conservative two years before David Beasley shocked the Republican establishment with the rise of that faction. (And boy, did the country club crowd sneer at the Bible-thumpers at the time!) But more to the point, he came along two years before the Class of 1994, and showed us a kind of fiscal conservatism that was not only rare, but unprecedented.

I had thought he was just another rhetorical fiscal conservative until, shortly after being elected, he did something I’d never seen one of them do: He voted against federal highway money for South Carolina, for his own constituents. Whoa, I thought. This guy’s actually for real. He continued in that vein. He term-limited himself after three terms. Then, after failing to beat Fritz Hollings (who called Inglis a “goddamn skunk”), he sat out for a bit and then came back. He came back as the same unique sort of conservative he’d always been. Inglis had always acted out of his own beliefs and conclusions, not because he was taking orders from any party or movement.

And that was his undoing. He always asked himself what was right, rather than what a faction demanded of him. And so it was that he favored a carbon tax. And voted (wrongly, but I respect his conscience on the matter) against the Iraq Surge. And was one of only seven Republicans to vote to reprove Joe Wilson for his outburst.

And for that Trey Gowdy crushed him in the primary last year. So I was very curious to see the kind of guy who could run that way to the right of Bob Inglis (from the Gowdy campaign website: “Inglis the Most Liberal Congressman of SC Republicans”), of all people — the guy with the 93.5% lifetime rating from the American Conservative Union. What kind of guy could accuse Bob Inglis of “hypocrisy” for chastising Joe?

The new look for Congress.

The Trey Gowdy I saw Monday is an interesting guy on a number of levels. I had never seen him before, and my eye ran right over him at first, as someone who could not be our speaker. For instance, he apparently does not own a comb. He appeared before the largest Rotary in the state without a tie, and with his hair looking the way mine looks only on Saturdays if I don’t take a shower first thing — not only disheveled, but matted from the pillow. (Others tell me it always looks like that, and evidence seems to support them.) If I go out like that, I wear a hat. He also evoked Saturday by the fact that he had not shaved that day. I kept thinking that was an optical illusion, that the light was just glinting off his chin in a funny way — until I saw him up close, and knew for sure that he had not shaved that day, if the day before.

He was going all-out to show that he was a different kind of congressman. Old-school Joe Wilson was there, and I tried to imagine him showing up to speak even to the smallest Rotary in the state in such a state of disarray. Impossible. Joe might get wild and crazy for two seconds once a career, but that’s about it. He’s a grownup, and Daddy shaves on weekdays.

So immediately, without saying a word, Mr. Gowdy projects: Not what you expected to see.

And then he shifts and does the conventional thing: He makes a number of disarming remarks to begin, such as praising Joe for being the father of four sons who have served in uniform, and saying things such as this: “I will promise each of you, you will disagree with at least one thing I say today. Some of you with everything that I say today. And that is absolutely fantastic.” That made some Rotarians chuckle with appreciation, but I wasn’t laughing. I knew this was a guy who needed to say things like that, because of how he got here.

And he said them, and he said them well. He ably presented the indisputable facts about the spending hole we’re in in this country — and to his credit presented them not as challenges to those horrible people on the other side of the aisle, but as things that everyone, left and right, stipulated as fact. To give you the benefit of his Powerpoint presentation, I got it from his staffer who was there. She had a bit of trouble emailing it, and broke it into three parts: this one, and then this one, and then this one. I hope you can view the slides. It’s hard for me to tell since I don’t have that application on this machine — except for a viewer, which may not work the same as the full software.

He preceded his slide show with another statement that I appreciated: “These are not Republican numbers, these aren’t Democrat (sic) numbers, these aren’t Tea Party numbers, these aren’t independent numbers, these are the numbers. If Chris von Holland, who was the ranking member of the Budget Committee and a Democrat were here, he would not take issue with any of these numbers.”

OK, point taken. And appreciated. I found little to dispute in what he said. And that was actually one of the main points he strove to make on Monday: That there really isn’t as much disagreement as you might think. It was good to hear.

All of which makes you wonder why, from afar, it seems no one can agree on anything. And there’s the rub. Mr. Gowdy stayed away from the kind of stuff that might have helped explain that — the kind of stuff that got him elected (that is, got him nominated, which where he lives is the same as elected), or that drew such national attention to the “SC5.”

And as it happened, my mind started to focus on those gaps. Several times in his speech or in answering questions, he would say something ingratiating and charming, something that was engaging and charming because it left certain pertinent details out. Here are a few examples:

  • He repeatedly said he had nothing against addressing taxes, that he and everyone else was for “tax reform.” But he said, suppose you let the Bush tax cuts expire. That would only give you $92 million a day in new revenue, when we borrow $4.7 billion a day. And then he moved on — without addressing why he wouldn’t go ahead and drop the tax cuts anyway. Why not? Why not put yourself on the high ground and make it possible for a grand bargain to be made? Especially when the taxes thus levied are not all that great, as you say. But he moved on without explaining that, except for a passing remark that he knew guys who would gladly let the Bush cuts expire in exchange for a Balance Budget Amendment. He said that as though it were a natural trade, as though such an absolutist change to the constitution itself were a concession no greater than itty-bitty (in his estimation) tax cuts to expire as they were scheduled to do. As though that were an even swap…
  • “I’ll commit to tax reform if everybody will commit to fiscal reform.” Really? Well then, please explain to me exactly who in Washington, what significant faction, came to the table refusing to cut spending. Everybody was willing to cut spending. And if you had given a little on taxes, you could have pushed them to cut more spending, so hungry were certain parties (such as the president, whose re-election seems in trouble) for a Grand Bargain. But he did not explain that discrepancy.
  • He was asked (by Julian Fowler) why, if everyone agreed in private on the basic facts as he said, why did Congress treat “compromise” as a dirty word? “I think you will see compromise in the last term of most people’s political careers. And I say that with a sad heart, to be honest with you. Primary politics is, um, is different from general election politics. That’s just a fact.” Really? Really? It makes you said that you nailed Bob Inglis’ hide to the wall for daring to compromise, to think for himself, for occasionally even voting with the other side when his conscience demanded? Yep, that kind of thing is indeed… different. A moment later he said, “I don’t like to vilify people.” Really?

There were other things that, in the kind of editorial board meetings I was accustomed to in my previous life, would have caused me to say, “Wait a minute,” and seek an explanation. (And, I suspect, Mr. Gowdy would have been able to provide satisfactory ones in some cases.) But the Rotarians Monday were not raising such objections. Listeners to speeches seldom do. Most people want to like the guy in front of them, especially when he puts himself out to be liked. And they liked Trey Gowdy. Two Rotarians thanked him for giving it to them straight, “without political spin.”

I liked him, too. But sometime I want to sit down with him and dig into a few of those omissions.

Pelosi picks Clyburn for supercommittee

Apparently, Jim Clyburn is still the former speaker’s go-to guy:

House Minority Leader Nancy Pelosi on Thursday filled out the final three slots on the joint deficit committee by selecting three members of her leadership team to the panel.

Pelosi (D-Calif.) chose Reps. James E. Clyburn (D-S.C.), Xavier Becerra (D-Calif.) and Chris Van Hollen (D-Md.), giving the panel the highest-ranking African-American and Latino lawmakers in Congress with Clyburn and Becerra, respectively. Pelosi reiterated her call for Congress to consider “the grand bargain” of major entitlement cuts matched with increased taxes…

I don’t know what all that means, except that it would appear that in recent years it seems to have fallen to Rep. Clyburn to try, singlehandedly, to balance out the rightward tilt of our congressional delegation. For what that’s worth. Which, in South Carolina, as about as much as those T-shirts.

By the way, who started calling it “supercommittee?” And if it’s called that, how come Thor, Green Lantern, the X-men and Captain America aren’t on it?

Yeah, it’s good to cut federal spending, but…

As I’ve said, with the economy in the dumps, I hate to see us either cutting spending OR raising taxes — even though if we’re going to deal with the deficit, we need to do both.

But I was reminded of the price of it in this piece in The Wall Street Journal today:

Government Spending Holds Key to Growth

As goes government spending, so goes the U.S. economy.

This is the unpleasant reality a weak recovery and already stretched Federal Reserve have bequeathed. Absent a sudden pick-up in private sector activity, economic growth in the months ahead will largely take its cue from Congress and the White House. No wonder markets are jittery.

For one, the hit from spending cuts across all levels of government has already been a major drag on growth. Indeed, these declines shaved 0.7 percentage-points on average from gross domestic product growth in the first two quarters of 2011. Typically, that would be no disaster. Trouble is, this recovery has been unusually weak. So the government cutbacks effectively halved real GDP growth in the first half of 2011, leaving it at just 0.8% annualized.

The pace of underlying growth is expected to pick up a bit in coming months. But so, too, is the pace of government spending cuts. A glimpse of this will come Wednesday with the release of July federal budget figures….

Yeah, I know. Rock and a hard place.

Tell Navin I’m not “somebody” any more

Somebody tell Navin Johnson I just fell off the grid. I’m guessing I’m not a real person any more, because I no longer have a landline.

On Saturday, we called AT&T and dropped our home phone service AND more than 90 percent of our cable TV. We had just recently signed up for Uverse, and it included three months free HBO and several other services, and I was watching a LOT of HDTV. Too much.

I won’t be doing that anymore. Now, we have the local broadcast channels (which I almost never watch), and a few random junk channels. There’s no HD (and I can hardly bear to watch standard def anymore), no 24-hour news channels, and no sports. The latter two aren’t much of a loss for me. I recently discovered I will watch sports in HD, when I didn’t before, just for the spectacle — about as clear a case of the medium being the message as one is likely to find. And y’all know how I hate 24/7 TV “news.”

What does get to me is losing all the movie channels. The things I tended to watch the most were American Movie Classics (“Mad Men!” — which I won’t get to see at all now!), Turner Classic Movies, TBS and TNT — along with FX and a few others. And the HBO selections were pretty dazzling. Since we signed up for AT&T last month (after dropping Time Warner), I had spent a LOT of time on HBO. When I wasn’t watching a movie, I was recording one, or two, or three, on the DVR.

But part of the point here was that I was spending too much time on TV, period. I’ve got shelves of books I want to read and haven’t touched. I need to get to them. What has worried me lately is that I didn’t even want to get to them, as much as I should. Sure sign of brain rot.

What else did we give up? The phone number we’ve had since moving to Columbia in 1987. The one our kids had growing up. The one that was the reference point for so many different kinds of accounts all over town. I’m bracing myself for the first situation in which someone is calling up my account and says “What’s your home phone number?” And I have to say I don’t have one. (I also worry that someone might NEED to reach me, and has no way of finding me other than through published listings.) Now, I realize that’s not any kind of deal to my kids or their contemporaries. None of them live at home, and not one of them has a land line. But a land line — as irritating as it was, since nothing came in on it but telemarketers — was one of those things that said you were a grownup, you were rooted, you were established. I think that’s why so many people who HATE answering their land lines on the rare occasions when they ring still pay that monthly bill. Not doing so would make them feel — insubstantial, ethereal, not really there.

But NOT paying a bill for something I wasn’t using just didn’t seem a smart option anymore, so we pulled the trigger on the service.

There were a number of factors in the decision:

  • Too much TV. The temptation to watch it was too great. I was losing sleep staying up watching it — that happens when what you’re into is movies.
  • I was paying for Netflix, and wasn’t watching it at all any more. And didn’t want to give that up. And since I still have the Internet, I can still stream that, and that provides more TV than I’ll ever need.
  • The upcoming deadline for dropping the AT&T service without penalty. We had 30 days since we signed up, and about a week left of that. So a decision needed to be made.
  • The S&P downgrade of the U.S. credit rating. OK, that’s an oversimplification, but that was sort of the last straw. It was really a) our failure really to recover from the 2008 crash; b) my getting laid off in 2009; c) the fact that, after a reasonably encouraging start, it seems harder to sell ads on my blog, which beyond the way it hurts my bank account, is indicative to me of people being tighter and tighter with their money; d) the political failure to come to grips with debt last week, and knowing that even if we had, it would have meant cutting more spending and raising taxes, which both tend to cool the economy; e) the turmoil in markets Thursday and Friday, which to me reflected less the usual fact that traders are feckless, fearful jitterbugs, and more the larger situation; f) the debt crisis in Europe and its long-term implications; and g) the downgrading of the credit rating. I didn’t figure any of us was going to be making any more money anytime soon, so spending all this on HD movies (as cool as they are) and telemarketing calls was ridiculous.

As you can see, it takes a lot to make me give up my HD.

I got up Saturday morning thinking that if we were going to move before the AT&T deadline, we had to move soon. And then, right after writing this post about the S&P thing, I told my wife I thought we needed to do it. She got on the phone immediately, because as far as she was concerned, we just had all that stuff for me, anyway.

Here’s the really bad news in all this: You know how much I saved? About $64 a month. That’s all. Which is why so few people actually take this step. Our bundle — high-speed Internet, phone, TV — was $150 a month. You would think you could get Internet service and the local broadcast channels (which is probably about 5 percent of what I was getting) pretty cheap, right? But the new total is $86. My wife — who writes the checks at our house — is pleased with that. I am not. I feel like I’ve given up so much, they should probably be paying ME for the loss.

But I guess that’s not realistic.

Well, that’s good to hear — sorta, kinda

Just got this from the state Treasurer:

CREDIT RATING AGENCY MOODY’S REAFFIRMS SOUTH CAROLINA’S AAA CREDIT RATING

Rating agency’s negative outlook for US economy could impact South Carolina

(Columbia, SC) – State Treasurer Curtis Loftis issued the following statement in response to the action taken by credit rating agency Moody’s, who has reaffirmed South Carolina’s AAA credit rating but added a negative outlook similar to that given to the federal government.

“South Carolina has AAA credit for a reason,” Treasurer Loftis said.  “We live within our means and are constantly guided by sound financial principles. The negative outlook for the federal government has spilled over to the states and is a wake-up call that government must not spend more than it has.  The State Treasurer’s Office is monitoring this situation and is in constant contact with the rating agencies.”

South Carolina’s AAA credit rating means it costs less to borrow money for things taxpayers depend on like schools, roads and bridges.

Moody’s Investors Service will be conducting a credit review of select states including South Carolina within the next 90 days.  According to Moody’s, in order for South Carolina to earn a stable outlook, the state must maintain credit quality higher than that of the federal government in the event the U. S. government credit would be downgraded.

“The bottom line is simple: the action by Congress and the President causes uncertainty in the business community,” Treasurer Loftis said.  “We must demand fiscal conservatism and transparency from Washington.  South Carolina is doing its part and I ask D. C. to do the same.”

South Carolina, along with Maryland, New Mexico, Tennessee and the Commonwealth of Virginia, are the five states Moody’s confirmed AAA with negative outlooks with ratings indirectly linked to the U. S. government.  Those five states have a combined $24 billion of outstanding debt.

WEB/TV/RADIO: Click Here for a downloadable soundbite (.mpg) of the Treasurer on the debt issue.

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Well, that’s good to hear. Because I was worried about the credit agencies not being pleased with the debt deal signed earlier in the week. (Hey, neither I nor anyone else was happy with it; why should they be?)

All along, the word had been that the credit rating was endangered less by the debt ceiling deadline, and more by the failure of the gummint to come to terms with the deficit. Which they still haven’t done, of course. But let’s embrace whatever good news we can get.

Yo, and stock markets… Please settle down, as I said this morning:

So calm down, already! Stock market, this means you: “@nytimes: NYT NEWS ALERT: U.S. Economy Added 117,000 Jobs in July; Rate Falls to 9.1%”

What McCain had to say about the “hobbits” who are precipitating this crisis

You may have heard about John McCain’s speech excoriating the likes of the South Carolina delegation, and the Tea Party in general. Here’s the full text. Here’s an excerpt:

I will take a backseat to none in my support of the balanced budget amendment to the Constitution. I have voted for it 13 times. I will vote for it tomorrow. What is amazing about this is, some Members are believing we can pass a balanced budget amendment to the Constitution in this body with its present representation, and that is foolish. That is worse than foolish. That is deceiving many of our constituents by telling them that just because the majority leader tabled the balanced budget amendment legislation that, through amending and debate, we could somehow convince the majority on the other side of the aisle to go along with a balanced budget amendment to the Constitution. That is not fair. That is not fair to the American people to hold out and say we will not agree to raising the debt limit until we pass a balanced budget amendment to the Constitution. It is unfair. It is bizarro. Maybe some people who have only been in this body for 6 or 7 months or so believe that. Others know better. Others know better.

I especially like the way he ended it:

It is time we listened to the markets. It is time we listened to our constituents. Most of all, it is time we listened to the American people and sit down and seriously negotiate something before we face a situation where we are depriving the American people of the fundamental right of having a government that doesn’t deprive them of the essential services, goods, and entitlements which they have earned.

Oh, and in case you wondered where the “hobbits” part come in. That was from when McCain was quoting from this piece in the WSJ. An excerpt from that:

The idea seems to be that if the House GOP refuses to raise the debt ceiling, a default crisis or gradual government shutdown will ensue, and the public will turn en masse against . . . Barack Obama. The Republican House that failed to raise the debt ceiling would somehow escape all blame. Then Democrats would have no choice but to pass a balanced-budget amendment and reform entitlements, and the tea-party Hobbits could return to Middle Earth having defeated Mordor.

Slouching toward history’s first intentional Great Depression

We’ve been here before, back in the late ’20s and throughout the ’30s. But this time, we’re going to do it on purpose.

There’s blame to go around, in the long view. The Democrats did their bit leading us up to this point, but they’ve been offering compromises lately, and occasionally even making sense. Here in the home stretch, most of the “credit” for a crash will belong to the Republicans and their Kool-Aid-drinking — I mean Tea-drinking — friends.

Yesterday, the five Republican members of South Carolina’s congressional delegation “distinguished” themselves by being the most obstinate state bloc in the GOP caucus. Not that the Boehner plan was anything to write home about, or anything likely to get us toward a resolution. Today, I see that Boehner’s doing better among his caucus, but for all I know, our guys are still firing on Fort Sumter. (Anybody see an update on the SC part? I haven’t yet.)

But after all the tears and folderol in the House, whatever they pass will be DOA in the Senate, where Reid has a plan of his own. I fail to see how these two plans lead us to an actual solution before Tuesday.

And here’s the thing, folks — it’s not good enough to raise the debt limit. The ratings agencies will still probably downgrade the nation’s (AND South Carolina’s) credit rating, which will likely take our already staggering economy (did I mention that the newspaper company that laid me off two years ago just posted a 2nd-quarter loss of 32 percent?), and knock it right down onto the mat. UNLESS we take serious steps toward getting the deficits under control. And that’s WAY harder than just raising the ceiling.

You’d think — what with the fact that about the only thing our state’s leaders have had to brag about for the last 20 years has been our vaunted AAA rating — that the SC delegation would want to do something positive toward averting this disaster, wouldn’t you? Well, so far, you’d be wrong.

You know what happened in the U.K. after the Conservatives — the real conservatives, not these ruffians over here who take pride in throwing the Tories’ tea into the harbor — took over the government? They cut spending, and raised taxes. I was there when the taxes went up (see, “The terrible, awful, horrible day that the VAT went up,” Jan. 4) Far as I know, England is still there. Scotland, too. Maybe even Wales, and Northern Ireland.

Nobody wants to raise taxes at a time like this. It can have a cooling effect. Nor does a sensible person want to see drastic spending cuts, which can do the same. But the alternative to doing both looks considerably worse at the moment. And wanting to do one without the other — no, insisting upon doing one without the other, no matter what — is a form of madness.

Just something to think about, guys. Here at the last minute.

Things that would never occur to Jim DeMint

Cindi had a good column today on the subject of arbitrary caps and limits and pledges and the like. There are a number of good things to get out of it.

The first is the fact that Jon Huntsman is the only Republican presidential candidate who has refused to sign Jim DeMint’s Cut, Cap and Whatever pledge — which apparently irritates our junior senator no end.

Jim is all like, “I won’t support any candidate who does not support balancing the budget. … So for me, he’s out.”

Which ignores reality, of course. It doesn’t occur to Jim (or at least, he lets on that it doesn’t occur to him, on account of amassing personal political power now being the most important thing to him, judging by his actions) that a guy could be for a balanced budget amendment (which Huntsman is) and not want to kowtow to him by signing his pledge. For that matter, just to go way deeper into territory that Jim DeMint would find impossible to imagine, one can be for, very passionately for, a balanced budget — and yet not favor a constitutional amendment mandating it.

Personally, I’m ambivalent about the amendment thing. A balanced budget should be standing operating procedure, except in times of full-mobilization war and other serious emergencies. But that should be an annual decision by Congress, not a mechanism. Whether we’ve reached the point that we have to throw out that process is not yet entirely clear to me. Maybe we have. I’m just not sure.

That aside, though, there’s a bigger point here — a point even bigger than the national debt. It goes to the heart of representative democracy:

But there’s an important principle involved as well: Pledging to do or not do anything important is an abdication of elected officials’ duty to examine the issues before them and make their own decisions on behalf of their constituents. And it makes it impossible for officials to govern in a changing world. Imagine the pledges some politicians might have signed before 9/11 — and how that could have prevented them from taking necessary actions to protect our nation after the attacks “changed everything.”

Yes! Yes! YESSSS!!! (Waiter, I’ll have what he’s having…) Continuing…

When you sign away your right to consider all your options, when you are bound by uninformed opinions, when you take directions from people whose primary purpose is to maintain power and defeat those who don’t think exactly as they do, rather than taking advantage of different points of view to come up with the best solutions, then you can’t even imagine the complex solutions to our state’s interwoven ills, much less enact them.

Sounds like Cindi was listening all those years, huh? Not that she couldn’t have come up with all those thoughts on her own. Come to think of it, maybe it was me listening to her

How furious was Kenny Bingham? See for yourself

I wasn’t there when S.C. House Majority Leader Kenny Bingham tore into Nikki Haley on June 29, claiming her office misled lawmakers on the budget. But I had heard it was really something. After all, it got Kenny a standing ovation, which sort of tells you where our governor stands in the estimation of that Republican-dominated body.

Somehow, it didn’t occur to me to look for the speech on YouTube until someone mentioned it this week. I urge you to watch it.

By the way, for a fuller explanation of what happened, read Cindi Scoppe’s column of July 3.

Mayor Steve weighs in on debt debate

All day, I’ve meant to write a post about the debt battle in Washington, and haven’t found the time, and now Steve Benjamin has gotten out ahead of me. This just in:

Dear Friends,

The U.S. Capital BuildingToday I’d like to take a moment and talk with you about an issue of critical importance.

Right now, whether broadcast on our nightly news, echoing through the halls of Congress, or debated and discussed over kitchen counters and coffee tables across America, our entire country is immersed in a great conversation about budget deficits, debt limits, and our national priorities.

As Mayor, I am no stranger to this conversation. In fact, it was not that long ago that Columbia’s future was so unsure that Moody’s Investor Service assigned the city’s credit rating with a negative outlook questioning our ability to right the ship and stabilize operations.

But we took action and, by working together, we made the tough choices. We streamlined our operations. We saved taxpayers over $1 million by removing unnecessary budget vacancies. We increased oversight, installed new financial safeguards and we rewarded employees for being more efficient.

It wasn’t easy. But through hard work and sacrifice we improved our credit rating in record time and finished this fiscal year with a $3 million budget surplus.

We made the tough choices just as local governments across America have, by putting the public good ahead of political ambition. Now, with the August 2nd default deadline only weeks away, we expect our federal government to do the same.

We need to put our nation’s fiscal house in order so that we can move forward with investments in our infrastructure and communities that lay a foundation for future economic growth and prosperity.

The United States must pay its bills. Failure is not an option.

The consequence of default or delay would mean military salaries, Social Security and Medicare benefits would go unpaid while cost of our national debt would grow as would the cost of carrying that debt.

Everything from your home mortgage to your car loan and credit cards would cost more while your 401(k) and college savings account would be worth less.

Our fragile economic recovery would come to a halt and we would come face to face with the very real prospect of another recession, longer and deeper than the one before.

We cannot afford to simply kick the can down the road. We must believe in what is possible and overcome the challenges before us.

But in the midst of this challenge, I see reasons to be hopeful.

I see President Obama and Vice-President Biden working across the aisle with men like Speaker John Boehner and Senate Minority Leader Mitch McConnell to find a bipartisan solution.

I see a movement to close special interest tax loopholes so we all pay our fair share and shoulder this burden together.

I see a commitment to entitlement reform and a framework to make Medicare and Medicaid stronger and more efficient without shifting the cost of care to seniors and those with disabilities.

I see real progress being made and, beyond the shouts of hecklers and cynics, I still believe.

I still believe we can still do big things. I still believe we can make a real difference. I still believe we can overcome the challenges before us because I still believe in America.

The time to act is now. Call your Congressman and Senator today. Tell them it’s time to protect Social Security, Medicare and Medicaid. Tell them it’s time to protect our future. Tell them it’s time to stand up against the special interests and for the American people.

Tell them to act now and raise the debt ceiling before time runs out.

Sincerely,
Steve Benjamin

Cindi Scoppe explains the state budget

A couple of weeks ago, in response to some outrageous statement about the state budget put out by someone over at the Policy Council via Twitter — I forget now who it was, or what it was he or she said, but I think it was something like “this is the biggest budget ever” — I got worked up enough to go out and get some numbers showing what total nonsense that was. Because I knew we hadn’t caught up to pre-crash spending levels.

And I got the numbers, covering the last few years. And there were supporting documents, which are hard to link on WordPress (I usually go back and use TypePad on my old blog to link a file, then copy the code over here, which is tedious), and then there was the post itself to write talking about the numbers, and somewhere in the middle of it I fell asleep or something.

Oh, wait, I know — I sent Ashley Landess a Tweet asking her something about the numbers they had used, and while she answered my initial question, she didn’t (unless I missed it) answer a follow-up, and I used waiting for that response as an excuse to just let the whole thing drift, because I had satisfied my own curiosity and justified my own outrage (this is not, of course, the biggest budget ever), and it’s hard for me to maintain interest in numbers for very long. (By the way, I’m not blaming Ashley for not answering me a second time. In fact, maybe she did and it got lost in the ether. Nobody can watch that stuff all day, or read all of it, even when alerted to it.)

Then, a few days ago, Doug got on this kick of throwing HIS favorite numbers at us (similar to the Policy Council numbers, including federal spending and probably lottery money and the kitchen sink and all kinds of stuff that the Legislature has no control over, even though what we were talking about was the budget the Legislature was voting on), and did his usual thing of “Where are YOUR numbers?” and thumping his chest and all, and I thought about going back and digging up the real numbers and answering him, but I was then filled with ennui, because I knew it wouldn’t make any difference, and I just wasn’t interested enough.

Because I know how bogus the whole conversation is. I experience state government. I follow what’s happening. I see the cuts, year after year. After all, we have 8,000 fewer state employees than in 1994, as Cindi Scoppe notes today (see, I just threw number at you, but I didn’t have to spend time digging them up, which is what matters to me)…

In fact, that is my purpose in posting on this subject. Cindi never gets bored looking at the budget, and she understands it better than most people, certainly better than most of the people who get to vote on it. Consider her an enabler of my fecklessness on the subject. I had her to worry about the budget for me for most of 22 years.

And she’s still doing it. In her column headlined “The fable of the spendthrift Legislature,” she summed it up pretty well. (It would have been a wonder if she hadn’t. The freaking thing was 30 inches long. But as I told her, “It read like 18.” Old editor joke.)

It’s worth a read. It puts things into perspective. It explains why it’s so bogus for Nikki Haley to perpetuate the myth (as did Mark Sanford) that the lawmakers are a bunch of spendthrifts out there “growing government” at a rate that exceeds the kind of bogus arbitrary caps that those two governors AND House leaders are always on about.

By the way, while the Senate won’t go along with arbitrary caps (thank goodness; they still believe in representative democracy instead of government by formula), in recent years we’ve stayed well within that population-plus-inflation formulation. The average annual increase in the general fund has been 2.4 percent since 1994 (the year the Republicans took over), including the non-recurring portion. The recurring part has grown by 1.8 percent a year.

And lawmakers are still appropriating less than they did five years ago. So these are not the biggest budgets ever.

Man, this is boring…

Going through vetoes like a hot knife through butter

Good thing that Adam Beam is really into Twitter, too. Because I have relied upon John O’Connor to keep me up on what’s happening at the State House.

And today, he’s Tweeting about lawmakers rapidly working their way through Nikki Haley’s vetoes. Eventually, he put it all together on thestate.com. (That is, he put together what they’d done so far. They appear to still be going.) An excerpt:

The House voted to override Haley’s veto of $56 million for K-12 education by a 97-8 margin. Members of the Republican-controlled House then voted 103-6 to restore $12.4 million for new school buses. Haley, also a Republican, had vetoed the money, saying she wanted to privatize the bus system. The House also voted to restore another $20 million for schools, 89-18, which Haley had vetoed.

In other overrides, the House voted to restore:

• $1.9 million for the state Arts Commission.

• Almost $6 million for S.C. ETV.

• $1.1 million for University Center in Greenville by 89-22.

• $594,000 for Greenville Technical College by 78-31.

• $1.4 million for a program to help students with the high school-to-college transition by 82-28.

• Some state financing for next year’s GOP presidential primary.

Sounds like lawmakers have gotten just about as impatient with Nikki as they had with her predecessor.

“The Brad Show:” SC GOP Chairman Chad Connelly

Welcome to another guerrilla edition (as in, shot by me out in the field rather than the studio) of “The Brad Show.”

Our guest today: Chad Connelly, the new chairman of the South Carolina Republican Party.

I spoke with Chad over at the party HQ this morning. Since this was my first sit-down with him, I wanted to cover the bases — ask him to talk a bit about his background, etc. So we did.

But the hot topic — and if you can’t wait to get to it, it starts at 4:15 on the clip — was Gov. Nikki Haley’s threatened veto of funding for the SC GOP presidential primary in January.

Some highlights of that discussion:

  • He said there will be a presidential primary here, “no matter what.”
  • He said presidential primaries are so important that next time the Democrats have one, he’d be the first to support their bid for similar funding.
  • Total cost is a million dollars. Or maybe 1.5 million.
  • He expects to speak with the governor about it, and try to impress upon her the importance of the funding, this week. He’ll also be talking with legislative leaders.
  • Can General Assembly override a veto? “Yes,” he said.

Enjoy the show. This one is actually a bit shorter than most, which I hope you will appreciate. I asked about as many question as usual, but Mr. Connelly is a very focused speaker, which I guess adds up since that is his profession. It’s not that his answers were so short. It’s just that he said what he had to say to answer me, and stopped. Not many people do that.

DeMint: Do my will or the U.S. economy gets it!

Meant to call Robert Ariail today and suggest a cartoon idea to him. It would be based on the classic National Lampoon cover seen at right. Only it would have Jim DeMint holding the pistol to the head of the U.S. economy (some variation on Uncle Sam, perhaps), saying, “If you don’t do my will, the old guy gets it!”

I don’t know if Robert would have done it or not, but it’s the kind of thing I would have been eager to suggest to him in the morning when we worked together. Not that he necessarily would have listened. He probably would have come up with a better idea. But we’d enjoy the brainstorming process…

What brought this on? Oh, this story in the paper this morning:

DeMint to fight debt limit hike

Senator vows to block measure unless future federal deficits banned

WASHINGTON — Sen. Jim DeMint, who has wrought chaos in Congress over earmarks, immigration and health care, is preparing to launch a crusade that would make those fights look tame.

DeMint, a Republican from South Carolina early in his second term, is vowing to block any vote on raising the U.S. debt ceiling unless Congress moves to amend the Constitution by banning future federal deficits.

“I will oppose any attempt to vote to raise the limit on our $14 trillion debt until Congress passes the balanced-budget amendment,” DeMint told McClatchy.

DeMint’s stance puts him on a collision course with Treasury Secretary Timothy Geithner, who is warning congressional leaders of cataclysmic consequences if Congress fails to authorize a higher debt limit by mid-May, when he predicts the current $14.3 trillion ceiling will be reached.

“Defaulting on legal obligations of the United States would lead to sharply higher interest rates and borrowing costs, declining home values and reduced retirement savings for Americans,” Geithner wrote last week in a letter to Senate Majority Leader Harry Reid.

“Default would cause a financial crisis potentially more severe than the crisis from which we are only now starting to recover,” Geithner wrote….

Our junior senator is really something, isn’t he?

I wonder what he’s really thinking. Does he really believe that he WOULD do it, and destroy the U.S. credit rating, pulling the world down with us?

Does he think everybody ELSE believes he would, and will therefore do his will?

Does power mean this much to him?

Hey, Jim, I’m really disturbed about the towering U.S. debt, too. I have been for as long as I can remember, and never more than now. To be racking up this kind of debt when we aren’t in an existential war (and folks, the proportion of GNP going to military activities in Afghanistan, Iraq and Libya is pretty small compared, say, to the kind of national effort required in WWII — or at the height of the Cold War) is pretty scary, and a testament to a lack of political will, courage and wisdom.

But the reason it’s a concern is what it could do to our economy, how it could substantially and materially affect our futures and those of our children and grandchildren. It’s not that it offends us ideologically or something.

And yet, in service of his ideology, he wants to threaten to do something potentially every bit as damaging as out-of-control debt.

Pretty scary.